1
00:00:01,560 --> 00:00:04,880
Speaker 1: He is taking stock with Kathleen Hayes and Pim Box

2
00:00:05,040 --> 00:00:09,799
Speaker 1: on Bloomberg Radio. Jose Quervo brand of tequila was founded

3
00:00:09,840 --> 00:00:14,000
Speaker 1: back in seventeen and today it is the best selling

4
00:00:14,040 --> 00:00:18,960
Speaker 1: tequila in the world. Well, the family that controls Jose

5
00:00:19,160 --> 00:00:24,000
Speaker 1: Quervo the direct descendants of the namesake founder, the Beckman family.

6
00:00:24,480 --> 00:00:27,520
Speaker 1: Will they bring the company public? Let's find out more

7
00:00:27,640 --> 00:00:30,840
Speaker 1: from Ben Bain, he is our Latin America reporter for

8
00:00:31,080 --> 00:00:34,040
Speaker 1: Bloomberg News. Ben, thanks very much for being with us.

9
00:00:34,200 --> 00:00:38,000
Speaker 1: Tell us about this potential initial public offering, who is

10
00:00:38,159 --> 00:00:41,520
Speaker 1: behind it, what would it do to benefit the company,

11
00:00:41,680 --> 00:00:45,720
Speaker 1: and when is it expected? If if ever? Sure? Yeah,

12
00:00:45,760 --> 00:00:48,120
Speaker 1: thanks so much. Um. It's not the first time that

13
00:00:48,200 --> 00:00:51,120
Speaker 1: we've heard rumblings about a Quervo i p O, but

14
00:00:51,120 --> 00:00:54,760
Speaker 1: but it seems as though things are more advanced than previously.

15
00:00:55,240 --> 00:00:57,840
Speaker 1: We're hearing we could see this i p O as

16
00:00:57,880 --> 00:01:00,360
Speaker 1: soon as the third quarter of this year, at least

17
00:01:00,400 --> 00:01:04,080
Speaker 1: that's what UM. We understand the company's targeting UM and

18
00:01:04,160 --> 00:01:07,560
Speaker 1: it could be worth up to a billion dollars, so

19
00:01:07,600 --> 00:01:11,280
Speaker 1: it would be a pretty significant especially in Mexico where

20
00:01:11,360 --> 00:01:13,520
Speaker 1: we've had a pretty dead I p O market. We

21
00:01:13,600 --> 00:01:14,960
Speaker 1: just had one I p O this year, it was

22
00:01:15,080 --> 00:01:17,400
Speaker 1: much smaller. UM, so this would be this would be

23
00:01:17,400 --> 00:01:20,120
Speaker 1: a pretty big deal here in Mexico. UM. The company

24
00:01:20,200 --> 00:01:23,240
Speaker 1: is still set to be deciding what to do with

25
00:01:23,280 --> 00:01:26,720
Speaker 1: the money they could raise. UM. It could be used

26
00:01:27,040 --> 00:01:30,000
Speaker 1: for for things like, uh, we we've heard paying down

27
00:01:30,080 --> 00:01:33,320
Speaker 1: debt um or potentially you know, even more of an

28
00:01:33,400 --> 00:01:36,240
Speaker 1: acquisitive move UM. But the company is set to still

29
00:01:36,280 --> 00:01:39,600
Speaker 1: kind of be considering that and UM, you know, basically

30
00:01:39,640 --> 00:01:41,600
Speaker 1: it's a little bit wait and see. Since we first

31
00:01:41,600 --> 00:01:44,880
Speaker 1: reported this in March, so we understand things are more advanced.

32
00:01:44,880 --> 00:01:49,640
Speaker 1: The company has hired banks JP Morgan Morgan Stanley, UM

33
00:01:49,760 --> 00:01:54,000
Speaker 1: and locally Santander UM and also GBM to work on

34
00:01:54,040 --> 00:01:57,760
Speaker 1: the deal. So Ben of course, the tequila market, the

35
00:01:57,840 --> 00:02:00,760
Speaker 1: industry has has gotten so big, right, there's a lot

36
00:02:00,800 --> 00:02:05,760
Speaker 1: of tequila makers now it's a very popular spirit. Uh

37
00:02:05,960 --> 00:02:10,359
Speaker 1: what what what does this mean for tequila broadly? Uh,

38
00:02:10,440 --> 00:02:12,760
Speaker 1: in the Mexican economy, if they're going to have it

39
00:02:12,800 --> 00:02:15,679
Speaker 1: could be a billion dollar I p O. Yeah, I mean,

40
00:02:16,200 --> 00:02:19,720
Speaker 1: you're you're completely right. I mean tequila is UM, you know,

41
00:02:20,040 --> 00:02:22,720
Speaker 1: it's such a big deal globally, it's it's it's it's

42
00:02:22,800 --> 00:02:25,440
Speaker 1: kind of a growing drink of choice, um you know

43
00:02:25,480 --> 00:02:28,800
Speaker 1: for people around the world. Um, and in Mexico. UM

44
00:02:28,840 --> 00:02:32,440
Speaker 1: you know, the Backman family has been um you know,

45
00:02:33,000 --> 00:02:37,400
Speaker 1: trying to really kind of build on that momentum um. Uh.

46
00:02:37,520 --> 00:02:42,120
Speaker 1: Bloomberg reported, uh you know recently that the Backman family

47
00:02:42,200 --> 00:02:45,680
Speaker 1: is planning to transform the town around Tequila Mexico, which

48
00:02:45,720 --> 00:02:47,680
Speaker 1: is where uh you know a lot of um, a

49
00:02:47,720 --> 00:02:51,160
Speaker 1: lot of the tequila is basically made, um, to kind

50
00:02:51,160 --> 00:02:53,919
Speaker 1: of turn it into almost a Napa Valley like destination,

51
00:02:54,040 --> 00:02:57,880
Speaker 1: um you know for tourists. So certainly raising money, UM

52
00:02:57,919 --> 00:03:00,639
Speaker 1: you know, a billion dollars um you know, would would

53
00:03:00,680 --> 00:03:03,720
Speaker 1: go a long way, um potentially um in terms of

54
00:03:03,800 --> 00:03:07,359
Speaker 1: expanding tequila further. Jose where was certainly not the only

55
00:03:07,360 --> 00:03:10,280
Speaker 1: game in town either, um in the growing tequila markets,

56
00:03:10,280 --> 00:03:12,600
Speaker 1: so um, you know, would give them more firepower to

57
00:03:12,639 --> 00:03:15,880
Speaker 1: continue to lead away. Ben bayin terrific reporting, terrific story.

58
00:03:15,880 --> 00:03:19,000
Speaker 1: He's our emerging markets left town reporter Latin American for

59
00:03:19,000 --> 00:03:21,320
Speaker 1: Bloomberg News, joining us from Mexico City